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More than a third of investors in private equity investments expect to reap at least the same returns in the next five years that they enjoyed during the boom years, despite the lack of debt in the market that has brought the large buyout industry to a standstill.

Data provider Preqin has revealed that 36% of respondents to a survey expected to see the same returns in the next five years as they experienced over the previous five. It said that a further 6% are even more optimistic, expecting returns to be up to 500 basis points better, while another 3% of respondents expected returns to improve by more than 500 basis points.

The report has come as the credit crisis has almost dried up deal financing and brought fundraising to $82.3bn (€61bn), its lowest amount since the first quarter of 2005 when firms raised a total of $64.8bn, according to a Preqin report this month.

Preqin suggested the optimism has come from a widespread appreciation that funds historically are better performers when their investment periods are during market downturns.

However, the majority of the respondents were still more pessimistic than optimistic - with 45% of investors expecting returns to decrease by 500 basis points and a further 11% expecting even worse returns.

Andrew Sealey, a managing partner at UK private equity advisory firm Campbell Lutyens, said: “Good returns will be achieved by the brave. For new investments going forward, there are going to be some great times to be an investor in the next few years but clearly it will be a difficult time for existing portfolios."

The report has also showed a record number of funds have hit the fundraising trail, with 1,600 raising more than $900bn worldwide.

Sealey said fundraising will become “brutally difficult except for the very best players” and echoed Preqin’s sentiment that new investors will favour mezzanine, distressed debt, secondaries, real estate and fund of funds.